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When should you update your estate plan?

On Behalf of | Oct 26, 2021 | Estate Planning |

You finished your estate plan recently, but its contents may change. Do you know what life events call for an estate plan review?

Forbes explains when you should consider updating your estate plan. Ensure your estate documents always account for your most current desires.

A shift in assets or liabilities

If your estate’s value increases or decreases, it makes sense that your estate plan changes along with it. Specifically, consider how you first wanted to divide your property and if your shifting assets still align with those desires.

If you sell a property or business included in your estate, that could call for a change to your estate plan. You may gain a company or real estate property you want to add to your estate.

An outdated retirement plan

Your 401(k)’s or IRA’s beneficiary designation form determines your account beneficiaries, not your estate planning documents. If you ever change your retirement plans’ beneficiary, make the same change on your trust or will. You do not want the wrong person to receive life insurance death benefits or annuities.

Improper trustee or executor

You may change whom you designate your executor or trustee. In the months and years ahead, the original person appointed for the role may reconsider. The two of you could have a falling out, or your estate could change so much that you must choose another person for the role. Just like your estate plan, your choice of executor or trustee should reflect your current wishes.

Think twice about tucking your estate plan out of sight once you finish it. Some of life’s changes call for estate plan changes.